In empirical tests guided by recent theory (e.g., Hughes, Liu and Liu 2007; and Lambert, Leuz and Verrecchia 2012), we … based on the amount and quality of available information and the level of market competition. Consistent with theory, we … precision, which allows us to tease out the economic significance of each factor on cost of capital. We find that cost of equity …

environment, and we demonstrate that our new measures are superior in another setting. We also find that cost of equity capital … precision are more important factors than equity beta and firm size in determining firms' cost of capital, and that the …

I investigate whether information quality affects the cost of equity capital through liquidity risk. Liquidity risk is …

should be incorporated into the theory of capital markets …Prevailing models of capital markets capture a limited form of social influence and information transmission, in which … financial decisions, and affect market prices; and theoretical models of social influence and its effects on capital markets …